RMB 469.9 Mln Entrusted Loan Application

In order to meet its business development requirements and ease its cash flow, the company plans to apply for a one-year RMB 469.9 mln entrusted loan with China National Cereals, Oils & Foodstuffs Import & Export Corporation (COFCO), the company's controlling shareholder.

At the 9th Meeting of the 4th Board of Directors, held on 14 Oct 2008, a proposal related to the aforementioned issue was examined and approved.

As of 30 Sept 2008, the company had obtained RMB 608 mln worth of entrusted loans from COFCO, with RMB 45.42 mln related interest. Upon completion of the related-party transaction, the company will receive a total of RMB 1.08 bln in entrusted loans from COFCO in 2008. As the cumulative interest of entrusted loans for 2008 will not surpass 5% of the company's latest absolute net asset value, the above-mentioned proposal does not have to be submitted to a general meeting of shareholders.

Board of Directors
14 Oct 2008


Source: Securities Times

Date: 15 Oct 2008

CN01/RL/MR/BT/KM